8th Aug 2025 12:12
(Alliance News) - Stocks were muted at midday on Friday, as gold futures hit a new record high and investors look to an upcoming meeting between US and Russian leaders Trump and Putin.
The FTSE 100 index was up 4.53 points, 0.1%, at 9,105.30. The FTSE 250 was down 27.66 points, 0.1%, at 21,910.44, and the AIM All-Share was down 2.69 points, 0.4%, at 760.82.
The Cboe UK 100 was flat at 911.97, the Cboe UK 250 was down 0.1% at 19,305.02, and the Cboe Small Companies was down 0.5% at 17,092.18.
In European equities on Friday, the CAC 40 in Paris advanced 0.3%, while the DAX 40 in Frankfurt faded 0.1%.
"The FTSE 100 was just about keeping its head above water to stay above the 9,100 mark on Friday morning," said AJ Bell analyst Danni Hewson.
"Overall it has been a mixed week for the index with the split vote and hawkish tone adopted by the Bank of England yesterday lifting sterling and hitting the relative value of the Footsie's dominant overseas earnings.
"US gold futures hit a fresh record high on reporting that the Trump administration has imposed tariffs on imports of one-kilo bars. Sustained by factors like its safe haven credentials and a weakening dollar in 2025 – this latest development will have gold bugs eyeing the USD4,000 level."
Spot gold was quoted up at USD3,388.82 an ounce on Friday against USD3,387.20 late Thursday. Gold price futures posted a fresh all-time high around USD3,534.00 on Friday.
Brent oil was quoted higher at USD66.92 a barrel at midday in London on Friday from USD66.48 late Thursday.
Rostro analyst Joshua Mahony added: "European markets have kicked off the day with a somewhat cautious tone, with markets failing to gain traction on a day that brings the potential for volatility as the deadline runs out for Russia to end their conflict with Ukraine.
"For markets, the impending meeting between Trump and Putin over the coming days does provide the basis to expect a more patient approach for the time being, with oil prices falling to a one-month low in a signal that market concerns over a shift away from Russian oil will be minimal. Nonetheless, anyone following previous discussions between Putin and Trump will likely remain somewhat sceptical around the possibility of a breakthrough, raising the chance of more oil volatility."
The pound was quoted higher at USD1.3435 at midday on Friday in London, compared to USD1.3412 at the equities close on Thursday. The euro stood unchanged at USD1.1631. Against the yen, the dollar was trading up at JPY147.80 compared to JPY147.44.
German Chancellor Friedrich Merz announced on Friday a suspension of exports of military equipment to Israel that could be used in the Gaza Strip following the Israeli government's decision to expand operations in the coastal territory.
Merz said it was "increasingly difficult to understand" how the Israeli military plan would help achieve legitimate aims and added: "Under these circumstances, the German government will not authorise any exports of military equipment that could be used in the Gaza Strip until further notice."
Premier African Minerals fell 17% in London.
The developer of RHA tungsten and Zulu lithium projects in Zimbabwe says the second phase of its plant test run at Zulu is progressing on schedule.
"We continue to deal with optimisation and commissioning issues as would normally be expected and continue to see promising results with each step forward," the company explained.
Premier African Minerals added that plans are "progressing" with two remaining plant issues needing longer-term solutions. These comprise the replacement of the original original equipment manufcturer supplied sorters that are "not fit for purpose" and completing the tantalum recovery circuit. The firm has had interest from "several" unnamed parties seeking to buy tantalum and potentially assisting with the cost of the circuit.
Pennant International faded 11%.
The Cheltenham, England-based provider of systems support, technical services and training, focused on the defence sector, expects to report revenue of GBP4.5 million for the first half of 2025, down 39% from GBP7.4 million a year earlier. It anticipates a gross margin of 45%, against 48% a year before, and a widened adjusted pretax loss of GBP1.7 million from GBP400,000.
As previously reported, Pennant expects full-year results to be second-half weighted, with the GenFly technology upgrade contract to contribute up to 15% of 2025 revenue. Contract negotiations with the UK Ministry of Defence continue, but Pennant noted it is now likely the MoD will push the contract's award date into the fourth quarter or later. As a result, the board expects 2025 turnover will be "commensurately lower than market expectations".
At the other end, Petra Diamonds rose 37%.
The South Africa and Tanzania-focused diamond miner said diamonds sales revenue for the year that ended June 30 fell 33% to USD206 million from USD309 million, despite growing 19% in the fourth quarter to USD50 million from USD42 million in the third quarter. Diamonds sold over the year declined 18% to 2.4 million carats from 2.9 million carats.
Tender 7 sales in June totalled USD21 million in revenue, 46% lower than USD39 million in tender 5/6, as diamonds sold fell to 283,970 carats from 529,202. Average price in tender 7 remains unchanged at USD73 per carat.
Petra also on Friday says it has agreed in principle to a long-term solution for refinancing, which included a USD25 million rights issue at 16.5p per share, extending the maturity date of its senior secured bank debt to December 2029 and extending its senior secured second lien notes to March 2030. The refinancing proposals remain subject to shareholder approval.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.2%, while both the S&P 500 index and the Nasdaq Composite were called 0.3% higher.
The yield on the US 10-year Treasury was quoted at 4.25%, widening from 4.23%. The yield on the US 30-year Treasury was quoted at 4.83%, stretching from 4.80%.
US President Donald Trump on Thursday named the leader of his White House economic panel to fill a recently vacated seat on the Federal Reserve board, as he seeks to boost his sway over the independent central bank.
"It is my Great Honor to announce that I have chosen Dr Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," he announced on his website, Truth Social.
"In the meantime, we will continue to search for a permanent replacement," Trump added.
Miran will finish out the term of Adriana Kugler, an appointee of former president Joe Biden who announced her resignation last week.
The personnel shift comes as the Fed faces intensifying pressure under Trump, who has repeatedly criticised the central bank's chief Jerome Powell for not lowering interest rates sooner.
By Emily Parsons, Alliance News reporter
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